How Much Does Costco Gas Cost Today? Snapshot of Prices Across the U.S. | CostContessa (2024)

FAQs

Does Costco make money on their gas? ›

The short answer is that unlike pretty much every other retail business that sells gasoline, Costco doesn't care about making money from its gas pumps. In fact, Costco typically sells its gas at a moderate loss. Why would Costco do this? It's not an act of charity.

Generally speaking, buying gas at Costco is significantly cheaper than doing so at a traditional gas station. The typical driver can save more than $100 per year. Buying gas at Costco can justify a membership all by itself.

Mississippi has the lowest price of gas, with an average of $2.93 per gallon of regular gas.

Hong Kong had the highest prices for premium gasoline (95-RON) on April 15, 2024. That day, prices averaged more than three U.S. dollars per liter, which was notably more than in any other country.

Costco Anywhere Visa Card by Citi Cash Back Rewards

You'll get 4% back on eligible gasoline purchases for the first $7,000 per year and then 1% thereafter. You'll also earn 3% on restaurants and eligible travel purchases, including Costco Travel.

Costco, contrary to some speculation, doesn't sell gas below cost. Galanti says the margin is below the company's overall gross margin which stood at about 10% in the latest quarter. Scot Ciccarelli, an analyst Truist, has estimated that Costco's gas margins are in the mid-single digits.

Costco is listed as a TOP TIER™ gasoline retailer. Find out more at www.toptiergas.com. Kirkland Signature™ Gasoline contains five times the EPA detergent requirement in both regular unleaded and premium grades, and is formulated to clean your engine and help your vehicle run like new.

Q: Where does Costco get its fuel? A: Costco buys fuel from major refineries and distributors in each area. All Kirkland Signature™ Fuel is guaranteed, just like the merchandise we sell inside the warehouse.

Costco fuel stations are well-maintained by our capable attendants so you may be confident that the fuel going into your car is clean. Costco uses fuel filters in the petrol pumps to catch particles or debris larger than 10 microns in diameter. For comparison, the average human hair is seventy microns thick.

Here's Where Gas is the Most Expensive in the U.S. Hawaii has the most expensive gas in the U.S., followed by California and Washington. The cheapest gas prices are in Oklahoma and Gulf Coast states like Mississippi and Texas. Hawaii and California have the most expensive gas in the U.S., according to AAA.

Where is gas the cheapest in the world right now? ›

Petroleum prices are determined by market forces of supply and demand, not individual companies, and the price of crude oil is the primary determinant of the price we pay at the pump.

Gas prices at the pump are typically lower in the US because of the difference in taxes.

According to data from PEMEX and other consulting firms, the average price of Magna gasoline in Mexico during 2023 was MX$22.08/L (US$1.30/L), which is 120.8% above the promised amount set by President López Obrador.

The answer is surprising: Costco makes a profit mainly from membership fees. To shop at Costco, one must possess a membership. This permits Costco to do what no other grocery store could previously do, which is sell their items at a price so low that they break even.

Q: Why does Costco "hold" my funds if I use a debit card? A: When fuel is purchased with a PIN debit card or Visa card, Costco requests a "pre-authorization" from the card issuer before beginning the fueling process. This is a temporary hold that assures Costco will be paid for fuel dispensed.

Where does Costco gasoline come from? The gasoline from you local Cosco comes from the same terminal as the rest of your local gas stations. The only difference is that is doesn't get the proprietary additive package added to it that you pay extra for from Shell or Chevron or whatever your local options are.

If you're able to save $0.17 on 14.5 gallons of gas, each fill-up at Costco saves you around $2.47 compared with getting gas elsewhere. If you're looking to cover your membership fee with gas alone, you'd need to get gas at Costco between 24 and 25 times per year. If you go around twice a month, you'll easily do that.